According to the claims of US Representative Tom Emmer, FTX founder Sam Bankman-Fried sought “special treatment” from the SEC. They pushed for legislation for the altcoin market for the same purposes…
Did the SEC and the SBF cooperate?
US Congressman says Sam Bankman-Fried has made a deal with the SEC. In an interview with FOX, Emmer said that FTX’s collapse was not due to the failure of cryptocurrencies, but to “central finance”, “business ethics” and government oversight. The Congressman states that the SEC’s failure to avert disaster raises “important questions.” His allegations were as follows:
Apparently, they were working with Sam Bankman-Fried and others to give them special treatment that no one else in the SEC got. Sam Bankman-Fried was passing the special treatment law through Congress. That’s when the business fell apart when it finally came to light and the industry started waving red flags everywhere.
This could lead altcoin projects to collapse
Emmer also discussed SEC Chairman Gary Gensler’s lack of response to May’s crashes. He said it failed to protect investors against disasters like Celsius, Voyager and Terra:
What does the organizer do by going after good actors in the community and colluding with people who do despicable things?
Congressman is hinting here that Gary Gensler’s lack of response was instrumental in what happened at FTX (FTT).
Bankman-Fried said it wasn’t possible
The bankrupt CEO claims that “Neither FTX.US nor FTX was primarily regulated by the SEC… FTX Global is not open to US customers. Therefore, cooperation with the USA is not possible. So, as far as I know, no customers in the jurisdictions of US regulators have been affected by this,” he replied. Meanwhile, sources say Emmer was one of the members of Congress who previously tried to stop the SEC’s investigation into FTX.
Eight House members wrote a letter in March questioning the SEC’s power to communicate informally with blockchain companies, implying that inquiries could be illegal under federal law. The letter was led by Emmer, who was recently elected by the Republican group to the role of majority whip, the third position in the House of Representatives GOP leadership.
In a March 2022 Twitter thread, Emmer said:
My office, from crypto and Blockchain companies, don’t feel particularly volunteer that SEC Chairman Gary Gensler’s information reporting ‘requests’ to the crypto community is overburdened.
The SEC is in a similar position in the Ripple case.
William Hinman, a former member of the regulator, made statements in 2018 that he said Ethereum was not a security. The SEC, on the other hand, claimed that it was a Ripple security in late 2020. As you follow on Kriptokoin.com, this is one of Ripple’s biggest trump cards in the lawsuit right now. If it turns out that the SEC has reacted differently at different times, Ripple will have the advantage.
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